The banking sector’s profit growth is predicted to fall in 2023 as it will likely face many difficulties, according to experts from FiinGroup.

The group’s report on market prospects in 2023 shows that the banking sector needs to deal with five key issues this year.

Firstly, the interest rate level is still high, putting pressure on maintaining net interest income at the current rate.

Secondly, income from non-credit services, mainly in the cross-selling of insurance products, is not as abundant as before despite its strong growth, which accounts for 18.6 per cent of total revenue.

Thirdly, pressure on boosting lending due to difficulties in the real estate market and the economy’s “congested” liquidity in the field of property.

Fourthly, provisions for credit losses are increasing as many real estate loans could potentially become bad debts if credit in the field continues to be tightened.

Fifthly, the risk of non-performing loans (NPLs) from corporate bonds.